According to Clayton Christensen, “organizational culture affects and regulates the way members of an organization, think, feel and act within the framework of that organization.” (Christensen, 2006) In the case of Umpqua Bank, the organizational culture is so unique that both employees and customers embrace it. Umpqua is not just a bank, it’s a way of life and the experience you feel at this organization should surpass any banking experience you’ve had. In reviewing this case study, it’s interesting to see how culture is embraced at all levels of the banking experience. Since culture is the result of norms, values and common experiences within close working groups, I’m going to focus my analysis of Umpqua’s culture based on the experiences that both customers and employees have in this organization. Umpqua Employee Experience
Its evident Umpqua fosters a “service centric” environment and the organization’s culture is based on providing service above anything else. Ray Davis, Umpqua, CEO believes that if we “focus on service, sales will come.” This belief is evident in the various programs in place for employees, including all-inclusive training, incentive programs, and operational standards and measurement tools that were all designed to help improve the client experience.
Davis made sure that employees “walked the walk and talked the talk.” The company’s mission statement stated that “our people may achieve unparalleled personal and professional success” and Davis empowered them to achieve this through the various programs that were in place. The “Return on Quality (ROQ) program was a way that Umpqua managed the culture. This program measured the level of service at each branch. The “Oscars” given to branches with the highest ROQ’s generated excitement and was a source of empowerment for employees to consistently improve the experience for their branch. Success stories were often communicated through their internal newsletter, Umpqua Insider, which helped to motivate employees in all branches. Umpqua Customer Experience
The Essay on Analysis of the Effect of Culture Within an Organization
One of the primary responsibilities of strategic leaders is to create and maintain the organizational characteristics that reward and encourage collective effort.. The most fundamental of this is organizational culture. Organization culture is defined as a system of shared meaning held by members that distinguish the organization from other organizations. It develops to help organizations cope ...
From the customer’s standpoint, the design and services built into the Umpqua banking experience is another way that the culture is embraced. Having a US Postal counter in every branch, internet, special coffee, a direct line to the President and the overall “living room feel” are all factors that contribute to the experience at Umpqua. Customers are expected to have the “world’s best bank” experience because of all these unique services in place.
In the article “Leading by Leveraging Culture”, Chatman & Cha also referenced that the most effective organizations are those that have cultures that are “strategically relevant, strong and emphasize innovation and change.” (Chatman & Cha, 2003) The fact that Davis focused on the design of the bank, as a key part of the customer experience, is an indicator that the culture embraced innovation.
Overall, Umpqua’s model of providing a banking experience where employees and its customers thrive in is a good indicator of a positive organizational culture. Business is about “relationships” and Umpqua’s banking experience embraces a unique relationship with both their employees and customers. It’s difficult to manage culture within any organization, but Umpqua has the operational structure and leadership to make it work. I do wonder if they can actually be the “world’s best bank.”
I agree that they are creating a banking experience that we are not currently accustomed to. However, I wonder how electronic banking will impact Umpqua in the future. It would be interesting to see how they extend their experience to mobile bankers who refuse to actually go to a branch to do business. Organizational Chart
The Term Paper on I Experienced Culture Shock!
According to Wikipedia The Free Encyclopedia, culture shock “ is a term used to describe the anxiety and feelings (of surprise, disorientation, confusion, etc.) felt when people have to operate within an entirely different culture or social environment, such as a different country”. I remember that I felt a little bit of this shock when I traveled to Rome a couple of months ago. Although the first ...
Based on the case data, Umpqua appears to have a hybrid structure that has both functional and divisional qualities. The top leadership of the organization, including the board, operates in a “functional form.” All departments are differentiated, but have similar values and goals. Since the “functional structure also promotes in-depth skill development of employees,” (Nohria, 1991) Umpqua’s model of ongoing training and development of employees is consistent with this. The various branches at Umpqua have more of a divisional structure as each branch operates independently.
Yes, they follow protocols and standards, but in theory, also compete within one another. The ROQ accolades were awarded based on a branch’s success. The case study also referenced the autonomy that universal associates had in servicing customers, and that is consistent with a divisional structure. In evaluating Umpqua’s hybrid structure with its organizational culture, there is a good relationship between the two. Umpqua has a unique culture that extends to both the employees and customers, which requires oversight, training and flexibility within each branch. The hybrid structure complements this as there is influence from the top, but enough autonomy at bottom. Humboldt Bank Integration (Yellow Team)
